The agency said in the FIR -- registered after over a year of preliminary enquiry -- that a false storage quality certification was issued and timely recovery action was not taken, causing wrongful loss to STC and corresponding wrongful gain to the accused persons and entities.
KSOL Chairman Ramesh Chand Garg and Director Davesh Agarwal had approached STC for trade finance for the purchase of mustard oil, it said.
“In this arrangement, KSOL was the business associate, which was to identify/nominate suppliers for the supply of mustard oil; STC was to provide trade finance by issuing usance Letters of Credit in favour of such suppliers; the suppliers were required to supply mustard oil; and Star Agri Warehouse and Collateral Management Ltd. was appointed as Collateral Management Agency for receipt, storage, quality certification and monitoring of mustard oil stock on behalf of STC,” the FIR alleged.
The agency said in the FIR -- registered after over a year of preliminary enquiry -- that a false storage quality certification was issued and timely recovery action was not taken, causing wrongful loss to STC and corresponding wrongful gain to the accused persons and entities.
KSOL Chairman Ramesh Chand Garg and Director Davesh Agarwal had approached STC for trade finance for the purchase of mustard oil, it said.
“In this arrangement, KSOL was the business associate, which was to identify/nominate suppliers for the supply of mustard oil; STC was to provide trade finance by issuing usance Letters of Credit in favour of such suppliers; the suppliers were required to supply mustard oil; and Star Agri Warehouse and Collateral Management Ltd. was appointed as Collateral Management Agency for receipt, storage, quality certification and monitoring of mustard oil stock on behalf of STC,” the FIR alleged.
